M&G(SH:603899) KAIYUAN SECURITIES·2025-03-28 07:44Investment Rating - The investment rating for the company is "Buy" (maintained) [1][4] Core Views - The company is expected to experience a temporary pressure on performance in 2024, with projected revenue of 24.23 billion yuan (up 3.8% year-on-year) and a net profit attributable to shareholders of 1.4 billion yuan (down 8.6%) [4] - The company is focusing on embracing IP growth in its retail large store segment, which is anticipated to drive future growth [4][6] - The new five-year strategy is expected to support steady development, with traditional core business showing stable growth and continuous improvement in profitability [4] Financial Performance Summary - In 2024, the company achieved a revenue of 242.3 billion yuan and a net profit of 1.4 billion yuan, with a quarterly revenue of 71.1 billion yuan in Q4 2024 (down 5.0%) and a net profit of 370 million yuan (down 13.5%) [4] - The gross margin for 2024 was 18.9%, with a slight increase in Q4 to 16.8% [5] - The net profit margin for 2024 was 6.0%, down 1.0 percentage points [5] Revenue Breakdown - The traditional core business generated revenue of 93.3 billion yuan (up 2%), with a significant increase in revenue from Morninglight Technology at 11.4 billion yuan (up 33%) [6] - The company successfully expanded its customer base in various sectors, including military and energy, contributing to a revenue of 138.3 billion yuan from Morninglight Kolip [6] - The retail large store segment achieved revenue of 14.8 billion yuan (up 11%), with the Jiwu Miscellaneous Store contributing 14.1 billion yuan (up 13.4%) [6] Earnings Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 1.58 billion yuan, 1.76 billion yuan, and 1.95 billion yuan respectively, with corresponding EPS of 1.71 yuan, 1.91 yuan, and 2.11 yuan [4][7] - The current stock price corresponds to P/E ratios of 18.1, 16.3, and 14.7 for 2025-2027 [4][7]